Question

After watching the short video clip and reading "What is Strategy" by Michael Porter, discuss what you think his main point is. Do you agree with what he is saying? Why? Do you think that his comments are relevant in today's business climate?

Answer 1

In his article regarding what is strategy, Michael Porter argues and points up the relevance that today companies are competing only on the basis of the operational effectiveness. Although operation effectiveness and efficiency is an important thing to work on for the superior performance, it is not sufficient to achieve competitive advantage and success in the industry. You need to use such techniques which aren't as easy to replace, imitate or can be easily availed. You should use such techniques which are unique and holds a valuable position ehich is deep rooted inside the organisational system of activities which makes it even more difficult to copy. Thus, strategy helps in achieving the competitive advantage if used correctly and is hard to compete or even copy it, making it sustainable competitive strategy for the business to succeed.

Yes, I totally agree and Yes I think the comments made by him are relevant in today's business model as well. Many companies either perform different activities or same activities in the different way to make sure a sense of differential uniqueness is maintained and sustained to achieve competitive advantage in the industry. Porter states that a company can only outperform the rivals when difference could be established which is true in itself. Differential or cost leadership strategy helps the companies to position themselves differently making the customers to see them in a different manner as well. This is the only reason value is created and they are ready to buy the products from your company even if you are charging higher than others. This is the usefulness ot having and exploiting a good strategy.